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OKCoin Founder Star Xu Seeks to Acquire Public Firm for $60 Million

Star Xu, the founder of cryptocurrency exchange OKCoin, may be seeking a possible backdoor IPO for his firm by buying a majority stake in a Hong Kong-listed company.

On Jan. 10, Xu (under his real name Xu Mingxing) filed with the Hong Kong Stock Exchange (HKEX) for approval to buy a 60 percent stake in a construction engineering firm called LEAP Holdings Group Ltd.

Through his company OKC Holdings Corp., Xu is aiming to purchase approximately 3.2 billion shares of the company for HK$0.15 (around $0.02) per share. In total, the acquisition, if approved, would cost more than $60 million.

To avoid the news affecting LEAP Holdings’ stock price, the firm is currently suspended on the HKEX.

While the effort has yet to be approved by the stock exchange, the successful purchase of the stake could provide a route for OKCoin to become a public company in Hong Kong via a back-door listing. That is, rather than go through the process of applying for an initial public listing (IPO) and jumping through all the necessary regulatory hoops, they would simply buy a firm already listed in Hong Kong.

Last August, crypto exchange Huobi took a similar step, becoming the largest shareholder of a HKEX-listed firm called Pantronics Holdings for around $70 million.

Other major firms in the crypto space, specifically mining companies Bitmain, Canaan and Ebang, have filed for IPOs in the same jurisdiction, but seem to be making little progress with the HKEX. Canaan has now let its application expire, while a HKEX insider told CoinDesk in December that the stock exchange was “hesitant” to approve the offering for Bitmain.

A Bloomberg report early this month suggested that Canaan is now seeking to IPO in New York, but nothing has been officially made public to date.

Wolfie Zhao contributed reporting.

HKEX image via Shutterstock

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Report: Bitfury Weighs Initial Public Offering

Crypto miner manufacturer Bitfury is considering holding an initial public offering (IPO) as one of a number of strategic options for raising funds, Bloomberg reported Thursday.

Citing “people familiar with the matter,” the report says Bitfury is looking into listing in Amsterdam, London or Hong Kong, possibly as soon as 2019, though no final decisions have been made, according to the report.

Other options include raising debt financing or selling a minority stake.

The company has contacted investment banks around the world as it considers whether to hold an IPO, Bloomberg said.

Bitfury may be valued somewhere between $3 and $5 billion if it goes public within the next two years, according to Bloomberg’s sources. However, these valuations are “early estimates and could change depending on markets and the industry,” the report continued.

The company most recently released its latest generation of bitcoin application-specific integrated circuits (ASICs) for mining the world’s largest cryptocurrency by market cap last month, as well as an enterprise-grade bitcoin miner earlier in October.

It has also been working to build up a number of mining farms in Canada through its affiliate, Hut 8 Mining Corp.

Should Bitfury launch an IPO, it would join fellow miner manufacturer Bitmain, which announced its own public offering last month on the Hong Kong Stock Exchange.

Bitfury did not immediately respond to a request for comment.

Bitfury image via Piotr Swat / Shutterstock

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